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WELCOME

TO
OUR PRESENTATION

Model

Plan or diagram used to describe something


Business

Model

Plan or diagram for how itCompetes,


Uses its resources,
Structures its relationships,
Interfaces with customers, and
Creates value to sustain itself
Includes all the activities that define how a firm competes
in the marketplace

Business Model

Model

Plan or diagram used to describe something


Business

Model

Plan or diagram for how itCompetes,


Uses its resources,
Structures its relationships,
Interfaces with customers, and
Creates value to sustain itself
Includes all the activities that define how a firm competes
in the marketplace

Business Model

Schedule 1

Sales Budget
For the Year Ended December 31,2013

Particulars

Year

Quarter
1st

Budgeted sales in cases


Selling price per case
Total sales
% of sales collected in the period of sale
% of sales collected in the period of sale

2nd

3rd

11,500 34,500
46,000
23
23
23
264,500 793,500 1,058,000
70%
30%

4th
23,000
115,000
23
23
529,000 2,645,000

Schedule of expected cash collections


Accounts receivable , beginning balance
First quarter sales
Second quarter sales
Third quarter sales
Fourth quarter sales

103,500
130,500
185,150 79,350
264,500
555,450 238,050
793,500
740,600 317,400 1,058,000
370,300 370,300

Total cash collections

288,650 634,800 978,650 687,700 2,589,800

Schedule 2

Production Budget
For the Year Ended December 31, 2013

Particulars
Budgeted sales
Add: desired ending inventory
Total needs
Less : Beginning inventory
Required production

Q.1

Q.2

11,500
8,625
20,125
2,875
17,250

34,500
11,500
46,000
8,625
37,375

Q.3

Q.4

Year

46,000 23,000 115,000


5,750
7,500
7,500
51,750 30,500 122,500
11,500
5,750
2,875
40,250 24,750 119,625

Schedule 3

Direct Materials Budget


For the Year Ended December 31, 2013

Particulars
Required production in cases
Raw materials needed per case
Production needs
Add : Desired ending inventory
Total needs
Less: Beginning inventory
Raw materials to be purchased
Cost of per pound
Cost of raw materials to be purchased

Q.1
17,250
17
293,250
76,245
369,495
35,190
334,305
.30
100,291.5

% of purchases paid for in the period of purchase


% of purchases paid for in the period after purchase
A/C payable balance
First quarter purchases
Second quarter purchases
Third quarter purchases
Fourth quarter purchases
Total cash disbursements

Q. 2
37,375
17
635,375
82,110
717,485
76,245
641,240
.30
192,372

Q. 3
40,250
17
684,250
50,490
734,740
82,110
652,630
.30
195,789

Q. 4
24,750
17
420,750
45,000
465,740
50,490
415,260
.30
124,578

Year
119,625
17
2,033,625
45,000
2,078,625
35,190
2,043,435
.30
613,030.5

50%
50%

Schedule of expected cash disbursements


29,670.00
29,670
50,145.75 50,145.75
100291.5
96,186.00
96,186.00
192,372
97,894.50 97,894.5
195,789
62,289
62,289
79,815.75 146,331.75 194,080.50 160,183.50 580,411.50

Schedule 4
Direct Labor Budget
For the Year Ended December 31, 2013
Particulars
Required production
DLH per case
Total DLH needed
Direct labor cost per
hour
Total direct labor cost

Q. 1
17,250
.3
5,175
15
77,625

Note: DLH-Direct Labor Hour

Q. 2
Q.3
Q.4
37,375 40,250 24,750
.3
.3
.3
11,212.5 12,075
7,425
15
15
15
168,187.5 181,125 111,375

Year
119,625
.3
35,887.5
15
538,312.5

Schedule 5

Manufacturing Overhead Budget


For the Year Ended December 31, 2013

Particulars
Budgeted direct labor
Variable manufacturing overhead rate
Variable manufacturing overhead
Fixed manufacturing overhead
Total manufacturing overhead
Less: depreciation
Cash disbursements for manufacturing
overhead
Total manufacturing overhead(a)
Budgeted direct labor (b)
Predetermined overhead rate for the
year (a)(b)

Q. 1
5175
4
20700
70,000
90700
20,000

Q. 2
11212.5
4
44850
70,000
114,850
20,000

Q.3
12075
4
48300
70,000
118300
20,000

Q.4
7425
4
29700
70,000
99,700
20,000

Year
35887.5
4
143550
280,000
423,550
80,000

70,700

98850

98,300

79700

343550
423550
35887.5
11.802

Schedule 6
Ending Finished Goods Inventory Budget
For the Year Ended December 31, 2013
Item
Production cost per case:
Direct materials
Direct labor
Manufacturing overhead
Unit product cost
Budgeted finished goods inventory :
Ending finished goods inventory in cases
Unit product cost
Ending finished goods inventory in BDT

Quantity

Cost

17 pounds
.30 per pound
.30 hours
15 per hour
.30 hours 11.802 per hour

Total
5.10
4.50
3.54
13.14

7,500
13.14
98,550

Schedule 7

Selling and Administrative Expense Budget


For the Year Ended December 31, 2013

Particulars
11,500

Quarter
2
34,500

3
46,000

4
23,000

115,000

Tk. 2

Tk. 2

Tk. 2

Tk. 2

Tk. 2

Tk.23,000

Tk.69,000

Tk.92,000

Tk.46,000

Tk.230,000

15,000
60,000
8,000
4,000
12,000

15,000
60,000
8,000
4,000
12,000

15,000
60,000
8,000
4,000
12,000

15,000
60,000
8,000
4,000
12,000

60,000
240,000
32,000
16,000
48,000

99,000

99,000

99,000

99,000

396,000

122,000
12,000

168,000
12,000

191,000
12,000

145,000
12,000

626,000
48,000

Tk.110,000

Tk.156,000

1
Budgeted sales in cases
Variable selling and administrative
expense per case
Variable selling and administrative
expense
Fixed selling and administrative
expenses:
Advertising
Executive salaries
Insurance
Property taxes
Depreciation
Total fixed selling and administrative
expenses
Total selling and administrative
expenses
Less: Depreciation

Cash disbursements for selling and


administrative expenses

Year

Tk.179,000 Tk.133,000 Tk.578,000

Schedule 8
Particulars
Cash balance,
beginning
Add receipts:
Collection from
customers
Total cash available
Less disbursements:
Direct materials
Direct labor
Manufacturing
overhead
Selling and
administrative
Equipment
purchases
Dividends
Total disbursements
Excess(deficiency) of cash
available over disbursements
Financing:
Borrowings(at the
beginning of
quarters)
Repayments(at
end of the year)
Interest
Total financing

Cash balance, ending

Cash Budget
For the Year Ended December 31, 2013
Schedule

Q.1

Q.2

Tk.46,700

Q.3

Tk.33,409.25

Q.4

Year

Tk.32,940

Tk.46,700
Tk.286,884.5

288,650
335,350

634,800
668,209.25

9,78,650
1,011,590

3
4

79,815.75
77,625

146,331.75
168187.5

194,080.50
181,125

84,500

124,750

130,500

110,000

156,000

179,000

60,000
10,000
421,940.75

40,000
10,000
645,269.25

30,000
10,000
724,705

(86,590.75)

22,940

286,884.5

687,700
97,458,415
160,183.5
111,375

2,589,800
2,636,500
580,411.5
538,312.5
439,250

99,500
578,000
133,000
20,000
10,000
534,058.5

150,000
40,000
2,325,974
310,526

440,526

120,000

10,000

130,000

120,000

10,000

(130,000)
(15,300)
(15,300)

Tk. 33,409.25

Tk. 32,940

Tk. 286,884.5

(130,000)
(15,300)
(145,300)

Tk. 2,950,226

Tk. 2,950,226

Schedule 9
Budgeted Income Statement
For the Year Ended December 31, 2013
Particulars

Schedules

Sales
Cost of goods sold
Gross margin
Selling & administrative expenses
Net operating Income
Interest expense
Net Income

Note: Cost of goods sold=115,00016.94=1,948,100

1
1,6
7
8

Tk.
2,645,000
1,948,100
696,900
626,000
70,900
15,300
Tk. 55,600

Schedule 10

Budgeted Balance Sheet


December 31, 2013

Assets
Current assets :
Cash
A/C Receivable
Raw materials inventory
Finished goods inventory
Total current assets
Plant & equipment:
Land
Buildings & equipment
Accumulated depreciation
Plant & equipment, net
Total assets
Liabilities & Stockholders Equity
Current liabilities:
A/C payable (raw materials)
Stockholders equity:
Common stock
Retained earnings
Total stockholders equity
Total liabilities & stockholders equity

46,700
103,500
10,560
37,740
198,500
100,000
600,000
(122,000)
578,000
Tk. 776,500
29,650

300,000
446,850
746,850
Tk. 776,500

Variance Analysis Direct Material

Actual quantity of input,


at actual price(AQ*AP)
(1)
1750000 pounds* .25
per pound= Tk. 437500

Actual quantity of input


Standard quantity
at Standard price
allowed for actual output
(AQ*SP)
at standard
(2)
price(SQ*SP), (3)
1750000 pounds*.30
1700000 pounds *.30
per pound=Tk. 525000
per pound=Tk. 510000

Price variance=87500 F Quantity variance=15000 U


Total variance=72,500 F

Variance Analysis Direct Labor

(1)
Actual hours of input at
the actual rate, TK.,
(AH*AR),
35000 hours*13 per
hour=tk.455000

(2)
Actual hours of input at
the standard rate,
(AH*SR)
35000 hours*15per
hour=tk.525000

(3)
Standard hours allowed
for actual output at the
standard price ,(SH*SR)
30000 hours*15 per
hour=450000

Rate variance=70000 F Efficiency variance=75000 U


Total variance=5000 U

Variance Analysis
Variable Manufacturing Overhead
Actual hours of
Actual hours of
input at the actual rate ,
input at the standard
(AH*AR) ,TK.,
rate,(AH*SR)
(1)
(2)
35000 hours*3 per
35000 hours *4 per
hour=105000
hour=140000

Standard hours
allowed for actual output
at the standard rate
(SH*SR) (3)
30000 hours*4 per
hour =120000

Rate variance=35000 F Efficiency variance=20000 U


Total variance=15,000 F

Findings
At

the completion of our master budget now we


can stand at a point that a master budget gives a
big scenario of organizations future operation to
financial manager .

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